Economy grew at 3 percent pace during final quarter of 2011

During the October 2011-December 2011 quarter, the economy grew at a 3 percent annual rate—up from a previous estimate of 2.8 percent, according to The Washington Post.

Much of the growth during the final quarter of 2011 has been attributed to an increase in businesses rebuilding their inventories, which had been depleted during summer 2011.

Although stockpiling is expected to slow during this quarter, which could slow economic growth, economists say incomes, consumer spending and business investment are rising and likely will sustain modest growth this year.

Economists expect the economy to expand at a roughly 2 percent annual pace during the January-March quarter and about 2.5 percent for the year. The economy expanded at a 1.7 percent annual rate during 2011.

Incomes grew more than expected during the fourth quarter of 2011, increasing 1.4 percent—nearly twice the first estimate. And incomes grew 0.7 percent in the third quarter compared with previous estimates of a 1.9 percent drop.